Shares of clean energy company Bloom Energy have demonstrated remarkable strength, surging close to 500% over the past twelve months. The stock is now approaching its record high, buoyed by a fresh wave of institutional optimism. A recent initiation of coverage by Citigroup has provided additional thrust, reinforcing a powerful market narrative centered on the intersection of artificial intelligence and constrained power infrastructure.
The AI Power Demand Catalyst
The core investment thesis driving Bloom Energy’s valuation is a fundamental shift in energy demand. Technology giants and hyperscale data center operators face a critical challenge: public electricity grids are frequently operating at capacity, leading to protracted connection timelines. This creates an urgent need for reliable, on-site power generation solutions.
Bloom Energy’s solid oxide fuel cells are positioned as a direct answer to this problem, offering decentralized power production independent of the traditional grid. The company’s strategic positioning is reflected in its burgeoning order backlog, which has expanded to $20 billion. A key partnership with asset manager Brookfield has further cemented its role as a preferred provider for AI data center projects globally.
Citigroup Sets a Bullish Price Target
Adding formal analyst coverage to the story, Citigroup has assigned Bloom Energy a price target of $162. While research analyst Vikram Bagri initiated the stock with a “Neutral” rating, the market response to the report was positive. The newly established target sits significantly above recent trading levels, suggesting potential for further appreciation despite the equity’s substantial rally. Closing at $141.06 on Tuesday, the share price is within striking distance of its 52-week high of $142.52.
Should investors sell immediately? Or is it worth buying Bloom Energy?
Operational Performance Underpins Growth Narrative
The company’s ambitious growth projections are supported by concrete financial results. For the fourth quarter of 2025, Bloom Energy delivered a strong performance that exceeded market expectations. Revenue jumped nearly 36% year-over-year to $777.7 million, while earnings per share of $0.45 comfortably surpassed forecasts.
Management’s guidance for the 2026 fiscal year has also bolstered investor confidence, with an anticipated revenue range of $3.1 to $3.3 billion and expectations for a stable gross margin profile.
Institutional Ownership Climbs
This compelling fundamental story has attracted significant attention from major market players. Data indicates that the number of hedge funds holding positions in Bloom Energy increased by over 37% in the most recent quarter. Institutional investors now control more than 75% of the company’s outstanding shares.
With industry reports suggesting hyperscalers could ramp capital expenditures to as much as $600 billion, the operating environment for Bloom Energy remains highly favorable through 2026. Investors are now looking ahead to the next quarterly results, scheduled for release in late April or early May, as the next key catalyst for the stock.
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